MALAYSIA - RESEARCH - ISRA embarks on ambitious strategic plan to strengthen its global reach

The Kuala Lumpur-based International Shariah Research Academy for Islamic Finance (ISRA), the Shariah research entity of Bank Negara Malaysia, the central bank, has embarked on an ambitious strategic plan for 2012 which focuses on strengthening its global reach, further enhancing the quality of its activities and increasing its connectivity with market players and industry stakeholders. (source)

BANKING - Malaysia c.bank sharia advisers forbid forward forex fee

Aug 26 (Reuters) - The Malaysian central bank's sharia advisers have outlawed the payment of a fee to support a pledge made in Islamic forward foreign currency transactions, saying such charges contravene the religion.

Islamic banks tend to levy a payment when a promise or "waad" is made to enter into a forward foreign currency hedging contract to reflect the parties' commitment to the transaction.

BANKING - Islamic finance mulls global sharia adviser platform

Aug 25 (Reuters) - A global authority may be set up to oversee Islamic finance sharia advisers, a religious scholar said, amid calls to address the fragmented regulation which threatens to slow the industry's growth.

The role of sharia scholars has been a growing point of debate as the $1 trillion industry's rapid rise raises issues such as the shortage of advisers, conflicts of interest and a lack of transparency in their rulings.  Sharia scholars shape the direction of the Islamic finance industry by issuing fatwas on financial instruments and banking practices.

LAW - SHARIAH - CONTRACTS - Malaysia sets up committee to enhance its legal framework as `The laws of choice' for Islamic finance transactions

IN a move to position and strengthen its existing legal framework as ‘the Laws of Choice’ for Islamic financial transactions, Bank Negara Malaysia, the central bank, last week established a Law Harmonization Committee (LHC) comprising members from among key government stakeholders, including the Attorney General's Chambers as well as industry players and experienced Islamic finance legal practitioners.